Bangladesh Bank has introduced a new type of account called the 'Non-Resident Convertible Taka Account' to encourage investment by expatriate Bangladeshis. According to a circular issued on Tuesday, the account will allow expatriates to deposit remittance funds in offshore banking units, use the money for domestic investments or as loan collateral, and repatriate funds abroad when needed.

The central bank stated that the initiative aims to integrate remittance flows more effectively into the financial system, expand offshore banking operations, and create greater investment opportunities for non-resident Bangladeshis. The account can be opened against foreign currency remitted through banking channels and may function as a savings, current, or term deposit account. Deposits may include remittance funds, transfers from other non-resident accounts, interest or profit income, and proceeds from approved investments.

Banking sector observers noted that the new account is expected to bring more remittance funds under formal banking channels, expand offshore banking activities, and enhance liquidity support for export-oriented industries operating in specialized zones.